Shurgard Europe has became the fourth European real estate company to shelve an IPO this month. Europe's largest owner of self-storage facilities issued a statement on Friday blaming 'adverse market conditions' for the cancellation.
Shurgard Europe has became the fourth European real estate company to shelve an IPO this month. Europe's largest owner of self-storage facilities issued a statement on Friday blaming 'adverse market conditions' for the cancellation.
The company, owned by California-based Public Storage, had expected to raise up to EUR 725 mln in the listing on Euronext Brussels on Tuesday. The share sale would have reduced Public Storage's interest in Shurgard Europe to between 44-52%, while raising funds to pay down debt and to finance new development.
Dutch financial daily Het Financieele Dagblad reported that only a quarter of the 43 million shares on offer had been subscribed, prompting Europe's largest owner of self-storage facilities, to cancel the listing plan.
Dutch real estate company Uni-invest cited unfavourable market conditions when it cancelled its EUR 313 mln IPO just hours before the launch on 19 June. A week earlier, German retail property firm Boetzelen retreated from a planned listing in face of investor apathy. And on 6 June, UK-based Vector Hospitality - which was planning to launch a hotel real estate investment trust (REIT) - put its IPO plans on ice due to lack of investor interest.
